SUPPORTERS of the People’s Progressive Party (PPP) picketed the National Assembly on Monday, calling on the Government to recall the proposed 2017 National Budget.Backed by key players in the party, the protesters, many of whom travelled from Parika in Region Three, contended that the proposed budget would cause Guyanese greater hardships.
Amelia Ali, one of the picketers, told Guyana Chronicle that the 2017 Budget “is not a people’s budget.” She said many of the measures outlined in the $250B Budget pose too many strains on the people of Guyana. “The VAT is just outrageous,” Ali contended.
The APNU+AFC Administration has proposed that Value Added Tax (VAT) be reduced from 16 per cent to 14 per cent, in keeping with its manifesto promise to the people of Guyana. However, it has also proposed that the 14 per cent VAT be applied to water and electricity consumption in excess of $1,500 and $10,000 respectively.
But although the Government is arguing that many citizens — particularly the regular man in the street — would not have to pay VAT on water and electricity, the Opposition and its supporters are not buying into this argument.
Describing the budget as “draconian”, PPP Member of Parliament Dr. Vindhya Persaud contended that the budget would impose greater hardship on Guyanese all across the country.
“…because when we think of the taxation that has been levied on the people, it is 57 new taxes,” Dr. Persaud said, while bemoaning Government’s move to apply VAT to the consumption of water and electricity.
“How do you tell the person at home, the pensioner who has only gotten $800 on their pension, that they have to pay 14 per cent on water and light?” she questioned, while pointing out that both water and light are essential commodities used by people every day.
“How do you tell a housewife, who is already struggling to budget, that what was once zero-rated is now tax exempted, and that cost from the manufacturers will now be passed onto her at home; and that cost-of-living will rise?” she further questioned.
According to the PPP parliamentarian, there is not much in the budget for the social services sector. “It has nothing in there for the single parent, for women; there are a few lines on the Child Protection Agency, and that’s it,” she contended.
Dr. Persaud believes that Government and the parliamentary Opposition should use the ongoing budget debates to consult and agree upon measures that are workable, and those that are not workable.
She said, however, if Government holds fast to its position, businesses, particularly small businesses, would feel the negative impact.
“There are a lot of measurers in this budget that will effectively shut down businesses and enterprises. You are telling young people ‘We will provide employment for you’, and ‘become entrepreneurs’, but how could you become entrepreneurs when you are going to struggle to pay taxes and live?”
Former President and current Leader of the Opposition, Bharrat Jagdeo, has said that although there is not much that can be done by the PPP, given that Government has the majority in the House, that party will continue to voice its concerns and those of the people.
Minister of Communities, Ronald Bulkan, and Minister of Public Infrastructure, David Patterson, have argued that the naysayers have chosen to focus on only two of the many measures outlined by Finance Minister Winston Jordan in the budget. Like many of their colleagues, the ministers believe that Budget 2017 will put Guyana on a path of major economic transformation for the greater good of the people.